The dollar is down solidly across the board, particularly vs. the Swiss franc, where the greenback has fallen to a new all-time low. Chatter is on the rise that rate hikes could begin in Switzerland as soon as June. FXF+1.5%, UUP-0.8%.

The head of research group TAC suggests a sharp devaluation of the real is necessary and on the way. The strong real has made much of Brazilian industry non-competitive and the current account deficit is growing. Falling commodity prices and the end of the Fed's QE combined with lower Brazilian rates could be the final straw. Real ETF: BZF.

"In good times, everybody looks very handsome" says Nicolas Eyzaguirre of the IMF (formerly Chilean Fin Min), issuing a stern warning to Latin American countries to prepare for an inevitable economic shock. "We are much more prone to overspend in good times than other parts of the world."

Brazil faces "deindustrialization" due to the strength of the real, claims the head of Siemens' Brazilian operations, arguing for the possible imposition of further currency controls. High real rates have failed to cool the economy or bring down inflation as money from the developed world continues to flow into the country. EWZ-4.2% YTD.

Business is booming at FiREapps, where CEO Wolfgang Koester says U.S. firms are clamoring to hedge against dollar weakness. Jeff Macke notes companies getting swept up in this sort of worry could mark the sign of a market extreme - witness airlines' rush to hedge near the top of the 2008 oil mania.

"Our economy is far from where we would like it to be," says Fed chief Bernanke at a conference about the challenges facing lower/moderate income communities. Gold likes what it hears, now surging 2% to $1,562/oz. The dollar plumbs fresh 30-month lows.

Finding salary costs too high in Brazil, Deutsche Bank (DB) is moving positions to "lower cost" centers like Jacksonville. "Brazil used to be a cheaper (employment) center when compared with the U.S. ... not anymore." says the president of an aircraft maker.

Despite the usual rhetoric about the desire for a strong currency, U.S. officials seem unconcerned with the weakening greenback. The current decline in the dollar isn't out of line with 3 of its other recent bear markets. The only problem is 2 of those 3 moves ended with major financial panics.

The real is sharply lower after the Brazilian central bank indicates a slower pace of rate hikes, saying a "substantial" part of its fight against inflation is already in the system. The real ETF BZF-1.2%. EWZ-1.3%.

The key to the FOMC statement, and an all-clear signal to those who would sell greenbacks, may be that there were no dissenting votes after a number of recent comments from Charles Plosser and Richard Fisher indicated their discomfort with current monetary policy.

FX markets yawn as Treasury Sec. Geithner defends the greenback, saying "we will never embrace a strategy to weaken the dollar ... our policy has been and will always be, as long as I will be in office, that a strong dollar is in the interest of the country."

"Immensely worried," Brazilian President Dilma Rousseff says "under no hypothesis will the government demobilize efforts to control inflation." This follows the central bank's latest rate hike of just 25 basis points, from 50 ticks in previous actions; the "wrong move," says a local economist.

The Fed's Real Broad Trade-Weighted Dollar Index drops to 40 year lows. Chart readers have a look - either a trend line has been broken with the next stop zero, or the greenback has hit resistance and is due for a serious bounce.

The pummeling of the U.S. currency continues, the greenback again solidly lower against everything. Of particular note is the aussie, which hit another new record as Foreign Minister Rudd rules out intervention to check his currency's breathtaking rise.

Brazil's central bank hikes its benchmark interest rate 25 basis points to 12%. It's the 3rd increase this year, though the other bumps were 50 basis points. The real ETF BZF has moved sharply higher recently as the government keenly focuses on curbing inflation.

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